Business confidence recovered somewhat in May in Germany as expectations for the next six months have improved and after sinking in April.
The Business Confidence Index for the whole of Germany from the German Economic Research Institute (Ifo) rose in May to 79.5 points, from 74.2 points revised in April.
“Although some companies have assessed their current situation a little worse, their expectations for the coming months have improved considerably,” Ifo President Clemens Fuest.
“However, many companies are still pessimistic about their businesses. The gradual relaxation of confinement offers a glimpse of hope,” added Fuest.
In the manufacturing sector, business confidence has risen significantly because companies have improved their expectations, although industrial companies are far from optimistic.
His assessment of the current situation has worsened markedly again.
In the services sector, business confidence has rebounded remarkably since the all-time low in April due to the sharp rise in expectations and because they also valued their current situation somewhat better, although companies are generally pessimistic.
In trade, business confidence has also improved substantially because the relaxation of containment measures has especially improved the mood of retailers.
In the construction sector, confidence has improved for the first time after seven consecutive months of falls due to an unprecedented improvement in expectations, but construction companies value their current situation somewhat worse.